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Archive for the ‘Retirement’ Category

Web Wealth: Delaying retirement

Posted: September 23, 2012 at 8:12 pm


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Everybody should plan for retirement, but if you are working, there are good reasons not to actually retire if your health allows - at least not yet.

About 10,000 baby boomers turn 65 every day, according to this post at bankrate.com, which lists seven "signs" that retirement might not be the best idea for each of them. In addition to financial reasons, the list includes warnings that you shouldn't retire just because of your age and certainly not if you don't know what you'll do with time on your hands. In addition, be careful if you figure you'll be getting a part-time job in this era of persistent high unemployment.

http://bit.ly/Q21AOf

Retirement doesn't always improve quality of life, writes Emily Brandon in this article at usnews.com. Chances are good that you'll find yourself on a strict budget in retirement, Brandon writes, and your life that revolved around work will be gone. Liking your job may be the best reason of all for not leaving it for as long as you can do it well.

http://bit.ly/OMt2uV

Do retiring boomers threaten the economy? Yes, suggests this post at investorguide.com. "The strain of a greater number of retiring and aging citizens on an economic system that is very tenuous in terms of safety-nets could be catastrophic for the working class generations who are coming up behind them and who are going to have to somehow keep the economy propped up on increasingly shaky legs," it says.

http://bit.ly/OgsMdd

In a video on "Why you should not retire," career-design coach Marc Miller says that our jobs provide intellectual stimulation, socialization and other ego rewards that could go missing in retirement.

http://bit.ly/NGQyh6

Age-discrimination warnings pepper this article for small business employers titled, "How to dismiss an employee who will not retire." This is a minefield for companies that are, in most circumstances, legally barred from dismissing workers over 40 for age alone. Reading it could help you understand what you are up against if you decide to stay at the office instead of retiring.

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Web Wealth: Delaying retirement

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September 23rd, 2012 at 8:12 pm

Posted in Retirement

Personal Finance: Paying debt vs. funding retirement

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What do you do if you are loaded down with credit card debt but you know you should be saving for retirement? Do you concentrate on getting rid of the debt, and put off saving in the 401(k) or IRA for later? Or do you save now, pay off later?

There are two different answers to this quandary: One may make you feel better and perhaps move you further in the long run because you will have a sense of accomplishment along the way. The other is actually the best answer, but will work only if you are disciplined about getting rid of credit card debt.

So here goes the possible feel-good approach: Given the rigors of saving for retirement late in life, I suggest young people combine getting rid of credit cards with some retirement saving at the same time.

That way you move yourself along on your debts and on your saving, and - best of all - you begin enjoying a delightful reward: You start seeing your savings build up and begin to imagine spending retirement comfortably instead of sitting in your La-Z-Boy without cable TV.

Simply consider the difference between a 20-year-old who saves a little each week, and a 45-year-old with nothing saved. If the 20-year-old invests just $20 a week in a stock market mutual fund in a 401(k) or an individual retirement account, that account can end up with $1 million at retirement if the stock market performs the way it has historically.

At 45, a person who has saved nothing will need to save about $245 a week to end up in the same place as the person who started saving $20 at age 20. For the illustration, I assumed both average 10 percent annually on investments. That's the average in the last 86 years, although too high for the last decade.

Yet research by David Blanchett shows that there is a better way. Blanchett is head of retirement research for Morningstar and recently completed an analysis looking purely at the numbers.

He found that if you can focus on what's best for you in the long run and tackle those credit card debts until you have wiped them out, you can then save for retirement with better results. His calculations show that you can potentially increase your 401(k) balance by 14.1 percent over the person who just made minimum payments on credit cards while also saving for retirement.

For his analysis, Blanchett assumed a person had $400 a month that could be used either for credit card payments, the 401(k) or both. He found that a 30-year-old with $15,000 in credit card debt who simply paid the minimum on the cards wouldn't get rid of the debt for 36.6 years. In other words, the person would finally be debt-free five months before retiring at age 67.

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Personal Finance: Paying debt vs. funding retirement

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September 23rd, 2012 at 8:12 pm

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Space shuttle Endeavour flies a last lap of honour over Los Angeles before retirement – Video

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22-09-2012 08:14 Space shuttle Endeavour flies a last lap of honour over Los Angeles before landing at LAX to an emotional fanfare. Report by Matt Blake. Like us on Facebook at and follow us on Twitter at . Subscribe to ITN News!

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Space shuttle Endeavour flies a last lap of honour over Los Angeles before retirement - Video

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September 23rd, 2012 at 4:18 am

Posted in Retirement

Dave Gardner: Target retirement funds — The good, the bad and the ugly

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Target retirement funds offer one-stop shopping for investors who want a "set it and forget it" retirement strategy. Instead of wading through scores of funds, investors can leave the portfolio strategy to someone else.

Think you might retire 15 years from now? Just pick the target retirement fund geared for those retiring between 2026 and 2030. Now you're all set.

But is this a smart strategy?

The good

Target retirement funds offer a simple choice. When you have 20 investment options, paralysis can set in. Fearful of making the incorrect choice, the decision is deferred. With target retirement funds, you just estimate your retirement date and then select the appropriate fund.

These funds build in a high degree of diversification in their portfolios. Target retirement funds are usually "funds of funds." So by purchasing a Fidelity Freedom 2030 Fund (ticker: FFFEX), you are purchasing their all-sector equity fund and twenty other Fidelity funds. Each of these funds holds hundreds to thousands of different individual stocks or bonds.

So not only do you avoid the risks in betting on a single company or sector, but you also get the benefit of spreading your assets between domestic and international markets, and alternative asset classes including commodities and commercial real estate.

Finally these funds regularly rebalance their holdings. They sell the winners within their fund mix and purchase those that haven't done as well. Most individual investors do not regularly rebalance their portfolio, which costs them total returns over time. Target retirement funds allow you to offload this chore.

The bad

By investing in target retirement funds, you're making a decision that a cookie cutter investment approach will be effective. When we design a recommended portfolio for a client, we not only ask about their risk tolerance but also about their financial goals and come up with the best path forward considering their current assets and future savings. Target retirement funds don't incorporate any information that is specific to your situation.

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Dave Gardner: Target retirement funds -- The good, the bad and the ugly

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September 23rd, 2012 at 4:18 am

Posted in Retirement

Too many retierment accounts? Financial Retirement Adviser Jeff Vogan Mesa Tucson Arizona – Video

Posted: September 22, 2012 at 1:21 pm


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21-09-2012 15:01 As we save for our retirement years it's not uncommon to find ourselves with more accounts than we know what to do with. http As we save for our retirement years it's not uncommon to find ourselves with more accounts than we know what to do with. Throughout our working years we have sporadic opportunities to save for retirement and we are told diversification is the key to retirement success. As a result many savers find themselves with multiple retirement accounts. For example: 3 CDs, a Money Market Account, 2 annuities, an IRA, a 401(k) or 403(b), and 2 brokerage accounts. That would be a total of 10 separate retirement accounts. Here are just a few challenges caused by having too many retirement accounts: Which account should you spend first and why? Which account should you spend last and why? How do you calculate Required Minimum Distributions from multiple qualified accounts? Is one account losing as much as another is earning? (break even) Will you have enough money for a comfortable retirement? Are your beneficiaries set up properly on ALL of your retirement accounts? Mesa Tucson Arizona Financial Retirement Planner/Adviser Jeff Vogan offers some strategies to consolidate and simplify the income process.

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Too many retierment accounts? Financial Retirement Adviser Jeff Vogan Mesa Tucson Arizona - Video

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September 22nd, 2012 at 1:21 pm

Posted in Retirement

CIBC Poll: Canada's Baby Boomers not interested in a modest retirement

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Most say they would "work longer to live better", but some are taking a risk by carrying debt into retirement

TORONTO, Sept. 21, 2012 /CNW/ - A new CIBC (CM.TO) (CM) poll conducted by Leger Marketing reveals that most of Canada's 50-59 year olds don't intend to give up their current lifestyle as they enter retirement, despite falling short of their retirement savings goals. The poll also reveals that some Canadians in their 50s are planning to carry debt into retirement with no immediate plans to pay it off, an approach that could reduce their retirement cash flow and jeopardize their plans to live the good life.

Key poll findings include:

"One of the keys to planning for retirement is having a clear view of how much monthly income you can generate once you leave work, and whether that income will support your expenses," said Christina Kramer, Executive Vice-President, Retail Distribution and Channel Strategy, CIBC. "These poll findings would suggest that some Canadians approaching retirement would benefit from a conversation with an advisor about whether their retirement income and monthly cash flow will live up to their plans."

Carrying Debt for Life?

Poll results also show that some of Canada's boomers are already forecasting that they will carry debt into retirement, and have no plans to pay it off anytime soon.

According to Ms. Kramer, this may also suggest some Canadians approaching retirement are too comfortable with today's low interest rates on their debt, and may not have evaluated the negative impact that ongoing debt payments can have on their cash flow.

"Retiring with debt creates a drag on your retirement income, as monthly repayments will reduce cash flow and can actually limit your financial flexibility once you retire," said Ms. Kramer. "While some Canadians may feel they can incorporate monthly debt payments into their retirement, the reality is that repaying debt before retirement remains an integral component of maximizing cash flow."

Ms. Kramer added that for the vast majority of Canadians, a debt-free start to retirement is the right strategy. "Entering retirement with minimal or no debt maximizes your cash flow, and gives you a clear sense of the level of expenses that will be manageable within your retirement plan."

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CIBC Poll: Canada's Baby Boomers not interested in a modest retirement

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September 22nd, 2012 at 1:21 pm

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Retirement home murder still unsolved – Video

Posted: September 21, 2012 at 11:17 pm


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21-09-2012 02:29 Mary Morrison was strangled to death in July 2011.

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Retirement home murder still unsolved - Video

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September 21st, 2012 at 11:17 pm

Posted in Retirement

Three Tips for Early Retirement Investing

Posted: at 11:16 pm


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It's never too early to create a retirement plan, but before you dive in, make sure the water is clear. Retirement investing takes careful planning to get the results you want. With a few simple tips you can start to make the most out of your plan.

Tip 1: Budget

Every solid retirement plan starts with a concrete budget. Budgeting allows you to determine the amount of money you can contribute and save inside and outside of your retirement plan. Budget calculators are a useful way to determine your expendable monthly income and the amount you have available for savings. The amount you contribute to your 401(k) plan is largely dependent on your available savings.

The percentage you contribute to your 401(k) can be loosely determined by age. According to Linda Gadkowski of Beacon Financial Planning, in your 20s you should contribute 10% of your income. In your 30s, contribute 15% of your income toward retirement, and in your 40s, around 20%. However, if possible, you should always contribute the maximum amount allowed by the Internal Revenue Service.

Tip 2: Get a full match

To make sure you're getting as much out of your 401(k) as possible, get a full match. Employer 401(k) plans often contribute 50 cents of every dollar you contribute, up to 6% of your income. To get a full match, you should contribute at least the percentage that your employer is contributing. For example, if you make $50,000 a year and your employer is contributing 50 cents of every dollar at 6% of your income, they will contribute $1,500. You will contribute the full 6% of your income, which is $3,000.

However, contributing more than the match is always a good idea for extra savings and tax breaks. See how much money you'll save in your 401(k) plan with our 401(k) savings calculator.

Tip 3: Max out your 401(k)

To reduce your income taxes and save more money, max out your 401(k). The IRS determines the maximum amount of money you can contribute to your 401(k) on an annual basis. For 2012, the maximum is $17,000.

Contributing the maximum amount of money to your 401(k) reduces federal income taxes and most state taxes. If you make $50,000 a year and contribute the $17,000 maximum, you'll only be taxed on federal income for $33,000. State income taxes vary.

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Three Tips for Early Retirement Investing

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September 21st, 2012 at 11:16 pm

Posted in Retirement

Retirement Readiness Lacking in Some of America’s 30 Largest Metros

Posted: September 20, 2012 at 1:14 am


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MINNEAPOLIS--(BUSINESS WIRE)--

More than half of Americans say candidates positions on Social Security and Medicare are very likely to impact their vote during the upcoming election but debate over the future of these programs doesnt appear to be prompting an increase in personal retirement savings. In fact, the number of U.S. consumers who report making financial preparations for retirement has fallen to 70%, the lowest level in three years, according to a retirement readiness index released today by Ameriprise Financial (AMP). The New Retirement Mindscape 2012 City Pulse index examines the 30 largest U.S. metropolitan areas to determine where consumers are the most prepared for and confident about retirement and also tracks national and local retirement trends over time.

Hartford-New Haven (#1), San Diego (#2) and Minneapolis-St. Paul (#3) claimed the top three spots on the third annual index while Washington D.C. (#30), Charlotte (#29) and Indianapolis (#28) ranked lowest. Metropolitan areas were scored based on responses to a national survey that measured consumers likelihood to have determined the amount of money they need to save for retirement and their actual saving habits. The index also takes into account if people report planning for a variety of activities during retirement and express confidence about achieving their retirement goals.

While the majority of Americans we surveyed express positive feelings about retirement, were still seeing a significant lack of confidence in fact, nearly half admit theyre concerned about outliving their savings, says Suzanna de Baca, vice president of wealth strategies at Ameriprise Financial. The economic environment surely contributes to this uncertainty, but with proper planning, people can regain a sense of financial security and confidence in the future.

Financial preparedness elevates top ranked metros

Several things set apart the top ranked metros. Residents of Hartford-New Haven, San Diego and Minneapolis-St. Paul are significantly more likely to say they are making financial preparations, including setting aside money for retirement, determining how much they need to save and consulting with a financial advisor. Perhaps as a result, they are also much more likely to feel on track and financially prepared for retirement.

In top-ranked Hartford-New Haven, three-quarters (75%) of residents say theyve set aside money for retirement, compared to 63% of people nationwide. Nearly half (49%) report feeling on track for retirement the most of any metro and a sentiment expressed by significantly fewer consumers across the U.S. (37%).

However, despite the efforts theyve made from a financial standpoint, residents of these areas are only on par with the rest of the nation with regard to planning for the activities theyd like to pursue during retirement a fact which may leave them less prepared than they actually feel. In fact, in third-ranked Minneapolis-St. Paul, where residents report the highest levels of financial preparation, a mere 18% say they have given a lot of thought to where they might live in retirement and how they plan to rest and relax.

While the story isnt as positive for the bottom ranked metros, it may not be as grim as it initially seems. Indianapolis and Washington D.C. are on par with the national average with regard to financial preparation, while Charlotte scores just slightly below. However, residents of these metros report a significant lack of confidence in their ability to reach their retirement goals.

Significant differences and regional trends noted in this years rankings

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Retirement Readiness Lacking in Some of America’s 30 Largest Metros

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September 20th, 2012 at 1:14 am

Posted in Retirement

Free Stratford Retirement Report Helps People Make Affordable Assisted Living Decisions

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SEATTLE, Sept. 19, 2012 /PRNewswire/ -- Report published by Stratford Retirement informs caregivers and elderly about financial options for assisted care.

While Americans continue to live longer than ever, often well past traditional retirement years, there is a growing concern about the ability of Medicaid to cover long-term care cost. What has traditionally been a safety net for middle-income people with assisted care needs, has now turned into a contested political topic.

StratfordRetirement, a licensed memory care and assisted living facility in Seattle, often advises caregivers about the costs associated with long-term care, whether it be in a nursing home, an independent living facility, or at home. Based on their experiences, the staff has releasedareport, free to everyone, that helps the elderly and their loved ones make educated choices about how to pay for assisted care.

Titled "Paying for Assisted Living - A Guide for Seniors and Loved Ones," the report covers the multitude of payment alternatives available to families. It includes information on long-term care insurance, government programs, Aid and Attendance Veterans Benefits. It also includes information about taking advantage of life settlements and home equity.

Assisted living facilities typically offer condominiums or apartment-like housing to senior adults in need of help with everyday tasks. These tasks may include grooming, cleaning, dressing, or even eating. In spite of this extra care, residents of assisted living facilities generally don't require extensive nursing - although this often turns into a need later in life. One of the benefits of assisted living communities is that the expense, or monthly rent, is usually much lower than that of a nursing home.

For seniors who have been living independently for decades, navigating their financial options in this new world may be overwhelming. Many Americans assume Medicare will pay the complete cost of senior housing. The report explains why this is not often the case. Assistance from Medicare is very limited. Although Medicaid typically only covers nursing care, each state sets its own regulations on how funds are distributed.

This report also covers costs associated with memory care, also known as dementia care or Alzheimer's treatment. Memory care is considered a specialized type of assisted living, and the cost structure and payment options are often similar.

Caregivers and families that want to download this report free of charge should head over to: http://stratfordassisted.com/assisted-guide/

About Stratford Retirement

The Stratford at Maple Leaf is a recognized retirement facility that offers Independent, Assisted Living, and Memory Care all under one roof in Seattle.

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Free Stratford Retirement Report Helps People Make Affordable Assisted Living Decisions

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September 20th, 2012 at 1:14 am

Posted in Retirement


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